“Since the start of the NFT loan offer in October, X2Y2 has reached a volume of almost 3 million euros”

Launched in January 2022, X2Y2, the second Ethereum NFT market after OpenSea, has caused a lot of ink to flow due to a largely anonymous team and its choices, such as taking optional royalties. Meet her development manager, Derek Caussin.

Derek Caussin, development manager of X2Y2.io. © Jérémy Le Bescont

JDN. You are the only X2Y2 member whose identity is public. Isn’t it a problem for a market to have an almost entirely anonymous team?

Derek Caussin. It may have been a concern at first, but the important thing is to have a physical interlocutor to discuss with, and it has been possible since my involvement. The team is anonymous or a pseudonym, its location in Japan is known, our general manager TP has a Twitter account (visible hereeditor’s note) and don’t try to hide it. It’s not really a concern. Users and clients see what the platform is trying to do, which is trying to add liquidity and improve the market. We are not LooksRare (another market born in 2021, editor’s note), who cleaned his funds with their land and Tornado.Cash.

Your arrival in the market was made by an airdrop of tokens aimed at OpenSea users, to attract them. Today, OpenSea is still the leader in the NFT markets. How do you plan to get noticed now?

OpenSea still has the first mover advantage, and credit must be given to them: the market NFT it would not be what it is today without OpenSea. Now, in terms of differentiation, there are royalties, which we made optional after a very heated debate, as well as a peer-to-peer lending system with mortgage NFTs.

This mortgage NFT system has already been seen with BendDAO and caused quite a stir last August with a threat to liquidate assets, in this case collections from Bored Ape Yacht Club, Azuki or even CloneX. Don’t you think you will contribute to a new risk of volatility?

Yes and no. Our loan system works a lot like BendDAO but LTV (ratio between funding and asset value, editor’s note) it is usually between 50 and 60% maximum, rather than 90%. In case of default by the borrower, the lender repossesses the asset and since the LTV is modest, this is generally to their advantage. There will always be lender failures, but ultimately the holders of blue chip (Iconic and Expensive NFTs, Editor’s Note) have access to money they didn’t have access to before. From our perspective, it is more of a means of adding liquidity. Since launching our offer in October, we have already reached a volume of 2,300 ethers (about 3 million euros by 10/11/2022, editor’s note).

“X2Y2 will continue to develop financial derivative products”

You mentioned the subject of royalties being paid to creators, now optional on X2Y2, followed by other platforms. Solutions are emerging today to force markets to pay royalties to creators. How will you position yourself in relation to this counterattack?

I ask only one thing, is to return the power to the creators. The creators did not understand their dependence on markets. The abandonment of royalties has been, in a way, a wake-up call for creators and those to use the technological tools available to their advantage. We only ask that they restrict us by code and that way we can proceed. Personally, more than royalties for creators it meant more liquidity in the market, so I’ll always be in favor of that.

What are the future developments planned for X2Y2?

We will continue to develop financial derivatives and also explore other blockchains because many industries, including games, are expanding, for example, on Polygon. Our ambition is to open up to new users who are not necessarily native to Web3. We have to say things: we can still try to get another 10% of OpenSea’s market share, but that doesn’t represent that many users. The future is not about competing against each other, it is about educating the next generation of users on the concept and value of NFT and making it easier for users to access Web2.

French expatriate in the United States since his teenage years, graduate in finance (American University, Washington DC), Derek Caussin evolved within ABSXChange before merging with London, after being acquired by Standard & Poor’s. A golfer, real estate entrepreneur, he joined X2Y2.io in May 2022.

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